Gallagher Net Up For The Quarter

For the year, net income rose 13 percent, or $16 million, going from $130 million, or $1.41 a share, to $146 million, or $1.57 a share. Revenues rose 19 percent, or $204 million, going from $1.1 billion to $1.3 billion.

In a broadcast conference call, J. Patrick Gallagher Jr., president and chief executive, said: "The Gallagher team has accomplished a lot in 2003 with record new business production in every facet of the business. People here understand that nothing happens until someone sells something."

He said the company's performance was even more heartening in the face of an insurance market where rates are beginning to moderate. He said most lines are showing flat increases or declines in some cases. Most of this activity, he said, would come toward the middle to the end of the year. However, tough lines, such as medical malpractice, excess liability and those with poor loss ratios, would still see increases of between 1-to-10 percent.

"We have shifted into a softened or more moderating market approach and plan," said James S. Gault, president and chief operating officer of the firm's brokerage division and vice president at Gallagher.

He said the firm will concentrate on selling more products, focusing on retentions and tight expense controls.

Captives continue to see growth, Mr. Gault added, as more and more corporations are seeing benefits in controlling their long-term losses through their own risk retention vehicles.